You might find this interesting:- http://au.pfinance.yahoo.com/b/kathy-lien/24/the-warren-buffett-way-of-trading
More Buffett http://www.cnbc.com/id/15840232?video=3000008259&play=1 http://www.cnbc.com/id/15840232?video=3000008258&play=1 http://www.cnbc.com/id/15840232?video=3000008219&play=1 http://www.cnbc.com/id/15840232?video=3000008260&play=1 http://www.cnbc.com/id/15840232?video=3000008223&play=1
Essentially is a bet that euros will be sold as capital flees the EU and countries in trouble(maybe even in default) decide to leave the currency block, then they have to sell to buy the new national currency. ECB tightening might actually make this process happen sooner rather than later by triggering economic pain in the weaker countries raising the attractiveness of leaving the block
Thats an interesting view - though a breakup of the EU is a possibility (remote one) I don't think many folks would remain solvent for long trading on that idea. I believe the US Federal Reserve is actively lowering the value of the US dollar by pursuing its ultra-easy monetary policy. In terms of currency manipulation there is not much difference between US Fed and what The People's Bank of China is doing. Currencies like Euro/GBP are likely to remain strong for some time.
As of last night's Asian session, I have built a small short position in EUR/JPY. Carefully watching the key levels we're at in the EUR/USD and USD/JPY on the daily for some further clues. What type of time frames are you most focused with in general?
The Bernanke Peso getting pole-axed again. Euro at new multi-month highs, threatening to take out $1.39. Surprise rate hike tomorrow??? Hmmm.
I'm short the EUR against the JPY, CHF and a small amount against the USD(It was bigger but I cut as it went against me)
Final thoughts from Buffett http://www.cnbc.com/id/15840232?video=3000008224&play=1 http://www.cnbc.com/id/15840232?video=3000008230&play=1 http://www.cnbc.com/id/15840232?video=3000008294&play=1 http://www.cnbc.com/id/15840232?video=3000008264&play=1 http://www.cnbc.com/id/15840232?video=3000008297&play=1 http://www.cnbc.com/id/15840232?video=3000008230&play=1 http://www.cnbc.com/id/15840232?video=3000008291&play=1 http://www.cnbc.com/id/15840232?video=3000008269&play=1